Bank of America just raised its EUR/USD forecast
On Thursday, DA Davidson reaffirmed a Neutral rating on Utz Brands (NYSE:UTZ) shares, with an unchanged price target of $18.00, falling within the broader analyst range of $17-23. The company’s fourth-quarter results fell short of analyst and consensus expectations regarding revenue, which stands at $1.42 billion for the last twelve months, but exceeded predictions in adjusted EBITDA of $129.48 million. Brian Holland of DA Davidson noted that, although year-over-year volume for salty snacks showed a slowdown, Utz Brands’ adjusted EBITDA remained in line with initial projections due to significant productivity improvements. According to InvestingPro analysis, the company’s stock is currently trading near its Fair Value, with 8 more exclusive insights available to subscribers.
The initial fiscal year 2025 guidance provided by Utz Brands indicated that analysts might need to slightly lower their estimates, with InvestingPro data showing five analysts already revising their earnings downward for the upcoming period. Holland suggested that this adjustment was minor and possibly already reflected in the current stock price, which has declined 26.78% over the past year. Despite the earnings report, DA Davidson chose to maintain a cautious stance, citing a need for more stable market conditions before reconsidering their position. Get deeper insights into UTZ’s financial health and growth potential with InvestingPro’s comprehensive research report, part of our coverage of 1,400+ US stocks.
The commentary from DA Davidson highlighted a sequential deceleration in salty snack volumes over the past year, which has made it challenging to gauge the true market share progress of Utz Brands. Additionally, the firm pointed out that overall sales trends in the composite category of snacks continued to weaken as 2025 began, paralleling a decline in food industry valuation multiples.
Holland’s analysis suggested that while Utz Brands managed to meet its EBITDA targets through above-expected productivity gains, the broader market indicators and the company’s top-line miss warranted a continued neutral outlook. DA Davidson is looking for clearer signs of stability in the market before changing its assessment of Utz Brands’ stock potential.
In other recent news, Utz Brands reported its fourth-quarter earnings for 2024, showcasing a notable performance by surpassing earnings per share (EPS) expectations. The company achieved an EPS of $0.22, exceeding the anticipated $0.20, reflecting effective cost management and productivity improvements. However, Utz Brands’ revenue fell short of forecasts, recording $341 million against the projected $354.8 million. The company is targeting significant productivity gains of $150 million over the next three years, alongside an 80 basis point expansion in EBITDA margins expected in 2025.
The company plans to continue investing in supply chain automation and capacity expansion, while expanding its geographical reach. Analyst feedback from firms like Barclays (LON:BARC) and Bank of America highlighted Utz’s strategic focus on maintaining market share in core areas and expanding in new regions. Utz Brands is also working on optimizing its supply chain network and expanding distribution, aiming to capitalize on consumer trends favoring value-seeking behavior. Despite challenges, the company remains committed to its growth strategy, with a focus on productivity improvements and market expansion.
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